Wix.com (WIX): Evaluating Valuation Potential After Strong Q2 Growth in New Customer Bookings

Wix.com (WIX) just posted its second quarter 2025 results, and the numbers are already sparking fresh debate among investors. The headline takeaway is a serious uptick in business fundamentals. New cohort bookings rose by 14% compared to last year, and the momentum only picked up speed throughout July, with bookings for those cohorts growing more than 20%. This surge speaks directly to Wix.com’s ability to keep attracting new customers and could mean the platform is cementing its role at the center of the digital presence boom. Naturally, such numbers have prompted market watchers to reassess whether now is the right time to make a move on the stock. All this has happened against a backdrop of a volatile year for Wix.com’s share price. Despite the upbeat news on customer growth and bookings, the stock has slid 10% over the last year and is down 35% year-to-date. In the past month alone, shares dropped more than 11%. This soft momentum has come even as earnings expectations took a near-term dip, putting Wix.com in a spot where investor perceptions seem to be shifting, perhaps recalibrating the longer-term risks and rewards tied to its growth story. So with expectations cooling even as top-line trends heat up, is the market discounting an opportunity, or is it simply baking in Wix.com’s future growth already?

Most Popular Narrative: 31.5% Undervalued

According to the most widely followed narrative, Wix.com is trading well below its projected fair value, offering an apparent discount from market consensus on its long-term growth prospects.

Accelerating adoption of AI-powered tools and onboarding funnels is driving a significant increase in new user cohorts and higher conversion to paid subscriptions. This supports expectations for revenue growth in both the near and long term.

What is fueling this valuation surge, and why are so many analysts convinced Wix.com is primed for much bigger gains? The underlying forecast hinges on key future trends, ambitious growth targets, and premium financial assumptions that set the bar high for earnings. Want to know the logic and projections that could make or break this bold narrative? The real story behind the numbers might surprise even seasoned investors.

Result: Fair Value of $206.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, growing AI-powered competition and rising regulatory costs could affect Wix.com’s margins and make it more difficult to maintain premium growth rates.

Find out about the key risks to this Wix.com narrative.

Another View: Market Metrics Suggest a Premium

While some see Wix.com as undervalued, a different lens using a price-to-earnings comparison places Wix.com well above the technology sector average. Could the market already be pricing in the company’s growth story?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Wix.com to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Wix.com Narrative

If these perspectives do not fully align with your outlook, or you prefer hands-on analysis, you can easily craft your own narrative in just a few minutes: Do it your way.

A great starting point for your Wix.com research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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